When it doesn’t Appraise…

It’s the WORST!

Appraisal comes in low. There are some circumstances when we can dispute this but it’s so much better to be proactive on the front end.

Appraisal is ordered by the lender, but paid for by the buyer.

As a listing agent, one of our jobs (not all agents do this!!) is to make sure we are supporting the data we have come up with when listing a home.

I do and detailed Comparative market analysis (CMA) which helps determine value and where we list your home. Automated values like your zestimate or homebot report have never stepped foot inside your home so these numbers are generally a pretty broad scope. I also work off an appraisers worksheet to add and subtract values to come up with a more accurate number so we not only sell quickly but also have supporting data for the appraiser.

Once we get your home under contract, the appraiser will come out and do an inspection on your home. I create a packet that I first email to the appraiser showing all of the supporting data of how we came up with price and any other supporting documents I have or if there is knowledge of comparables that may be a stigmatized property or have some kind of defect that maybe the appraiser wouldn’t know. I do prefer to meet the appraiser in person at the property but I typically will ask them their preference.

Being proactive with appraisals is a huge step in the selling process in my opinion and so many agents do not take the time and it can save alot of headache and money in the end.

As a seller, if an appraisal comes in low, you have a couple options if the buyer is using a loan.
1. Drop the price to the appraised value
2. Meet in the middle with Buyer
3. If in competitive situation, buyer may be willing to make up the difference in cash
4. If no agreement can be made, buyer has the right to terminate the contract and walk away keeping their earnest money

More questions? I’m here to help! Click the button below to schedule a call!!